New York – Stocks resumed their advance Thursday following a one-day hiatus as investors looked past a somewhat cloudy picture for retail sales and higher oil prices. The Dow Jones industrial average has shown gains in nine of the last 10 sessions.
Retailers’ reports on sales at stores open at least a year, an important measure known as same-stores sales, initially concerned some investors Thursday because of scattered warnings that sales would be light during April. Investors seemed to shake off those concerns as well as unease about inflation and oil as they awaited a deluge of earnings reports set to begin in earnest next week.
“I think investors are trying to figure out what the next Fed move is. We’re really at the point of chicken – where the Fed is trying to ward off inflation without submarining the economy,” said Mark Coffelt, portfolio manager at Empiric Funds, referring to when the Federal Reserve might adjust short-term interest rates.
Sentiment on the health of the economy has wobbled as investors have looked to each new piece of economic data for direction.
After a back-and-forth morning, the Dow rose 68.34, or 0.55 percent, to 12,552.96.
Broader stock indicators also advanced. The Standard & Poor’s 500 index rose 8.93, or 0.62 percent, to 1,447.80, and the Nasdaq composite index picked up 21.01, or 0.85 percent, to finish at 2,480.32.
Bonds showed little overall movement as stocks took the lead. The yield on the benchmark 10-year Treasury note was unchanged at 4.74 percent from late Wednesday after being lower earlier in the session. The dollar was mixed against other major currencies, while gold prices fell.
Higher oil prices have weighed on stocks in recent sessions. On Wednesday, weekly government figures showed a larger-than-expected decline in gasoline stockpiles. Light, sweet crude settled up $1.84 at $63.85 per barrel Thursday on the New York Mercantile Exchange.
Often, rising oil prices trigger concerns about inflation.
The climb in stocks Thursday follows a pullback Wednesday that began after minutes from the Federal Reserve’s last meeting showed the central bank remains concerned enough about inflation that it won’t rule out an increase in interest rates.
The nearly 90-point drop in the Dow industrials Wednesday perhaps helped bring out ebullient bargain hunters Thursday.
